Swedbank: Purchasing power to fall 6 percent this year

Money.
Money. Source: Alexandr Podvalny/Pixabay

Liis Elmik, senior economist for Swedbank, said that the bank's forecast suggests purchasing power of salaried workers will fall by 6 percent this year for the largest annual decline in history.

Data from Statistics Estonia put the average gross salary at €1,593 in the first quarter, up 8.1 percent on year.

The average wage was still highest in information and communications (€2,871) and lowest in accommodation and catering (€974).

The average wage was highest in Harju County (€1,744) and lowest in Hiiumaa (€,1033).

Despite rapid gains, salary advance not even half of inflation.

"We forecast the purchasing power of workers receiving a salary to shrink by 6 percent this year for an unprecedented decrease. The last time the standard of living fell in Estonia was during the economic crisis 12 years ago. While both prices and wages went down back then, the difference was less than this year," Elmik said.

Estonia's annual inflation reached 19 percent in April, the highest in the Eurozone according to data from Eurostat statistics agency's flash estimate. The average increase was 7.5 percent on year.

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Editor: Marcus Turovski

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